Denver, CO — Political outsider, successful business leader, and Republican nominee for U.S. Senate Joe O’Dea issued the following statement following Biden's transfer of student loan debt onto working Americans.
“Joe Biden's student loan forgiveness scheme doesn't erase the debt. It puts $300 billion of new debt on the backs of working Americans,” said Joe O’Dea. “The debt is a national crisis. This compounds it.”
The so-called "Inflation Reduction Act" was allegedly supposed to reduce the federal deficit by over $300 billion and now this executive action completely wipes that out, according to the Penn Wharton model. Additionally, almost 70% of the benefits will go to households in the top 60% of earners.
For many low-income borrowers, $10,000 debt cancellation would have “zero impact on their monthly student loan payments.”
Biden's plan to cancel student debt would immediately increase inflation and “create additional inflationary pressure over time.”
Canceling student loans would penalize those who made sacrifices to pay off their loans.
Biden’s plan is a “one-time mechanism” which does not address the root problem of the high cost of education.
Even former President Obama’s top economic advisor called this action “inflationary” and “reckless”:
“Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless. Doing it while going well beyond one campaign promise ($10K of student loan relief) and breaking another (all proposals paid for) is even worse.” -Jason Furman
Learn more about the O'Dea campaign here.
Original source can be found here
